Memorandum 10-152 Snow Blower Purchase

CITY OF HOMER
PUBLIC WORKS DEPARTMENT

Jan C. Jonker, Superintendent Telephone: (907)235-3170
3575 Heath St. Fax: (907)235-3145
Homer, Alaska 99603 EMAIL : jjonker@ci.homer.ak.us

M E M O R A N D U M 10-152

To: Walt Wrede, City Manager
From: Jan Jonker, Public Works Superintendent
Thru: Carey Meyer, PW Director
Date: Wednesday, December 08, 2010
Subject: PW Snow Blower Purchase

Discussion

As you are aware Public Works has recommended the purchase of a replacement snow blower. This blower will replace our old 1986 blower.

Our recommendation was based upon soliciting bids from three (3) qualified heavy equipment dealerships. These dealerships are well established in Alaska and have successfully done business with the State and other municipalities. There are a limited number of manufacturers and a limited number of Alaska dealerships that can provide and service this type of equipment. Public Works contacted these dealerships with an RFP (per COH Procurement Policy & Procedures Manual, Section 3.16.110 – Competitive Sealed Proposals – Negotiated Procurement). This RFP included minimum specifications and requested that they provide written quotes for this purchase. The successful low bidder provided a government discount as a part of their bid.

The equipment proposed by each dealership is produced by a different manufacturer and has different capabilities, design and cost. Public Works introduced a competitive aspect to the procurement by soliciting three bids through a RFP process. In the end, this is a sole-source procurement, as there is only one available source for each piece of equipment.

The Procurement Policy & Procedures Manual, Section 3.16.060, Exceptions to Bidding Requirements, authorizes an exception to public advertising under 3.16.060 I, Sole Source Procurement. There are no local dealerships that can provide and service this type of equipment.

This is the same procedure that we have followed for several of our other large equipment purchases including the road grader in 2002 and our recent purchase of the new street sweeper in 2009.

Recommendation

Approve the sole source purchase of the new snow blower to Craig Taylor Equipment Co., Soldotna, AK in the total amount of $124,105. This purchase includes the base machine at $117,905.00 plus the torque limiter override for augers; $4,950 and carbide scraper blade: $1,250.